Sweet Ballz:

Cake Balls

Sweet Ballz: Cake Balls

Sweet Ballz: The Pitch

In Season 5, Episode 1 of Shark Tank, James McDonald & Cole Egger approached the Sharks seeking an investment of $250,000 in exchange for 10% equity in their Dallas, Texas-based start-up ‘Sweet Ballz’.

The pitch began with the introduction of the product. Here we learned that Sweet Ballz is a company which specializes in the production and distribution of a sweet treat known as ‘cake balls’. Sweet Ballz, as the name suggests, are small cake-like treats shaped into a ball. This allows quick and easy consumption.

While cake balls have been standard baking fare across the globe for a number of years, both James and Cole revealed that they have been working exceedingly hard over the years to ensure that their products stand apart from similar products on the market. This marketing push included a number of charity drives to raise money for testicular cancer as well as leading to a large distribution deal across the United States.

James and Cole were able to draw the Sharks in straight away with the revelation that their product had already achieved $700,000 in sales over the past three months. The majority of these sales were made through a distribution deal with over five thousand 7-11 stores across the United States. This offer demonstrated that not only was Sweet Ballz a viable business proposition with the opportunity to make a rather sizable amount of profit but also that James and Cole are a fantastic pair of businessmen who have the capability to make things happen for them. This caused the offers from the investors to come in thick and fast.

Sweet Ballz: Result

Receiving offers from all four investors is a rarity on Shark Tank. With every investor wishing for a slice of the pie James McDonald & Cole Egger had a difficult choice to make. After much deliberation they decided to accept Mark Cuban & Barbara Corcoran’s offer.

James & Cole left the Shark Tank with $250,000 for 25% equity in Sweet Ballz. This meant that they achieved the amount of investment that they required however this meant that they had to give away an additional 15% of their company.

Sweet Ballz: Investors

Mark Cuban has invested into over 80 ventures and counting. Mark looks for unique companies and products that can be game changers or strategic to a theme he likes or to another portfolio company. Avoid the word “passion” at all costs.

Barbara Corcoran is a compassionate investor that likes to give capable entrepreneurs a chance. If you want to land an investment with Barbara avoid collegiate name dropping, technical jargon and business plans that only look good on paper.